EHR and EMR Integration Cost

The healthcare industry is dealing with a major crisis of accurate documentation. There has been a significant shift in the healthcare industry ever since the introduction of healthcare software systems, and especially electronic health records systems.

The solution to a looming problem introduced another problem that could possibly impact almost all aspects of a healthcare practice. However, the solution to this new problem of accurate documentation also came with it, in the form of EHR integration.

In fact, a survey reported that 87.2% of the nurses agreed that EHRs have improved their documentation, and the custom EHR integration bridge enabled faster care with efficient diagnosis and improved care coordination.

This is one of the many reasons why EHR integration has become one of the cornerstones of the modern-day healthcare landscape. However, the cost of EHR integration has been a point of concern for many healthcare providers.

You see, being the necessity of healthcare delivery, EHR integration will soon be one of the norms. However, being in the transition phase and the rise of custom healthcare software systems, the EHR integration process itself makes it a little more costly affair.

Having said that, EMR integration pricing depends on a lot of factors that vary from the complexity of the system to the number of integration points, etc. And because of this, there is a common misconception that the cost of EHR integration is high.

Well, let me break the stereotype and tell you that the process can be cost-effective, and EHR integration ROI will certainly help you in the long run. But for you to have a cost-effective venture with EHR integration, you need to know the factors that drive EHR integration costs.

On that note, let this blog be your comprehensive guide to understanding, budgeting, and optimizing the cost of EHR integration.

Breaking Down EHR Integration Cost Components

The EHR integration process is a collaborative effort of various components. For having a clear understanding of the cost of EHR integration, let’s try to break down the cost factor of each component.

Cost of Initial Assessment & Planning

Planning and getting your system ready for EHR integration make up most of the EHR integration process. For this, you have to analyze your workflow, find the gaps in the data flow, and gather everything that you need to establish the integration bridge between your healthcare system and the EHR systems. For this, you will have to hire a Business Analyst and a project manager.

Once you have gathered everything you need to build the integration bridge, you then have to design the software architecture and plan how you will embed that into your existing system.

And last but not least, set up a project management team, so that when the work actually starts, you can easily keep track of the developments. All these activities come under the initial assessment, and on the basis of that, you have planned the future plan of action for your EHR integration. While these activities do not cost much, the standard rate that is charged for the discovery phase is for any custom software development.

Development & Implementation Expenses

Development and implementation are the most costly phases in EHR integration. The first expense that you will most likely incur will be for interface development. This is crucially important because the interface will reflect the data that is being transferred, retrieved, or shared between your healthcare system and the EHR system.

After that, data migration will take most of your healthcare integration budget. You see, data migration is a complex process that looks simple on the surface. As it is a process of moving data from one system to another, it looks like a copy-paste affair, right? Well, for migrating your data from one system to another, you have to prepare the data, extract from the system, transform the data for the other system to understand, and then load the data into that system.

Data migration can be a lengthy process, and the quality of data can further elongate the process. Moreover, with the type of database, the process and cost of this can vary.

And once this is done, you will have to test your software system and the EHR integration bridge to ensure that they are sharing the data accurately and in real-time. Furthermore, the testing and validation phase of the EHR integration is necessary for the credibility, sustainability, and stability of the system and custom EHR integration bridge.

Given the many technical aspects in the development process, this takes up most of your healthcare integration budget.

Operational & Transition Costs

The last bit of your healthcare integration budget must be reserved for training and change management. Training is important for your healthcare providers and staff for a smooth transition of this change, and also for the optimum utilization of resources.

Moreover, adopting change can also be challenging for your staff members, and they might even resist some aspects of it. Along with that, when you go-live with your EHR integration, there is a high chance that you might encounter some kind of problem, and to avoid such mishaps, you need a go-live support team so that your integration bridge doesn’t fail.

All these activities come under the operational and transition phase, which requires a significant investment, which automatically increases the EMR integration pricing.

Key Factors that Influence Integration Costs

If you’ve made it this far, then you’ve just got the idea about the cost of EHR integration and the stages that make up most of your custom EHR development cost. However, there are many factors that influence the cost of EHR integration, and this is where things get tricky. So, without further ado, let’s deep dive into the factors that impact integration cost:

Technical Complexity Factors

There are various technical factors that impact the cost of EHR integration, such as the number of systems that you want to integrate. If the number is high, then most likely the EMR integration pricing will go up. On top of that, the type of systems that are being integrated can also influence the cost. You see, similar systems are easy to integrate, but disparate systems using different technologies can lead to an increase in cost.

Since you will be sharing data between systems, the data volume and the complexity of the data also add to the technical complexity factor that might influence the cost.

Having said that, during the interface development phase, you get two choices: either develop a custom interface or use a standard interface. Standard interfaces are pre-designed and have defined templates, and the custom interface is built at your convenience. If you choose a custom approach, the cost can increase as the entire process of developing the interface starts from scratch.

And the most commonly faced EHR integration problem that takes up most of your EHR integration cost is the limitation of legacy systems. You see, many healthcare organizations are still using legacy systems for carrying out their day-to-day operations, both clinical and administrative.

In such cases, integrating your system with legacy systems can pose many issues and take a lot of time. The complexity of your legacy system and data is directly proportional to the cost of EHR integration. 

Organizational Factors

Apart from the technical factors, there are organizational factors that might also affect the cost of EHR integration. For instance, the size of your practice or the geographical presence of your practice, etc. 

But how? Well, the bigger the size of your practice, the higher the number of your systems, which will further add to the system complexity. Apart from that, depending on which state you’re practicing in, you have to adhere to its laws and other regulations, which again impact the integration process and directly contribute to the cost of EHR integration.

Vendor & Market Factors

The last factor that influences the cost of EHR integration is the market and the vendor you are choosing. Every healthcare IT vendor that offers EHR integration services has the liberty to charge the price as per their convenience. So, depending on the pricing model that you choose, the price of EHR integration varies. 

Furthermore, the higher the experience of your EHR integration partner, the higher the price will be. However, one of the best ways to save on vendor and market factor is by choosing a geographical market that offers IT services at a lower price. Outsourcing your EHR integration project can help you save significantly on your EHR integration venture.

Cost Comparison: Integration Approaches & Methodologies

If you’re still here, then you’re in for a treat, my friend! All the information above is to make you understand that technicalities between systems can be a costly affair, and you need to know that. But as they say, ‘Where there is will, there is a way,’ in this case, as well, there is a way. Let’s explore the different integration approaches and methodologies that can save significantly on the cost of EHR integration.

Traditional Point-to-Point Integration Costs

First things first, you cannot avoid the development expenses, especially in point-to-point integration, where every point of your system needs to connect with its counterpart in the other system. If you’re taking this approach, then the higher the number of systems, the higher the integration cost.

Moreover, one of the problems with the point-to-point integration approach that might increase EMR integration pricing is that every point-to-point connection between your systems needs to be maintained and updated individually, again increasing the burden on the IT team and indirectly increasing the price.

One of the major drawbacks of this type of integration is the scalability limitations when your system increases.

Interface Engine & Middleware Approaches

Depending on your needs, the traditional point-to-point approach may not be the ideal choice. After considering the EHR integration ROI with this methodology, it further complicates things. This is where the interface engine and middleware approach can come to your rescue. Let’s explore that in detail below:

Unlike the point-to-point integration approach, this approach can minimize the need for custom integration and even offer you out-of-the-box connectivity with your system. With a middleware solution, the upfront cost investment may not be required, but you will have to choose a monthly minimum payment model.

Adopting an interface engine and middleware approach can give you a better EHR integration ROI, since it simplifies data exchange and automates the process to minimize errors, interventions, and improve efficiency. Also, these custom EHR integration solutions are designed to offer you flexibility and adaptability, so you don’t have to invest in your EHR integration bridge again and again.

API-Based Integration Economics

Another integration approach that you can choose is API-based integration. This approach typically reduces the integration costs compared to all the approaches mentioned above. On top of that, with its growing popularity, many healthcare organizations are even making it one of the standard practices for EHR integration. By using standardized APIs such as FHIR, your system can easily connect with other systems and share information without the need for extensive coding.

With the API-based integration model, you also get an option for a monthly subscription model. Though it can be a little costly, for a quick solution, it can be implemented.

Building Your Integration Budget: Planning for Success

The choices have been made, and you know the EHR integration process inside out. Now, it’s time to talk about finances and build your EHR integration budget so that no stone is left unturned.

Initial Budget Development

The first step of building your healthcare integration budget is identifying all the cost drivers that might directly impact your EHR integration cost. To give you a head start, start by considering the size of your practice, system complexity, customization needs, regulatory requirements, third-party integrations, etc. 

After that, to get a cost estimation, use a component-based approach and break down the costs into hardware, software, implementation, training, and support. Some of the customization factors that you need to consider in this are a number of integration points, middleware licensing, and maintenance. 

And last but not least, have a contingency plan or a back-up plan, just in case there is a system outage or failure to ensure that your practice continues to perform even if the EHR system is not available. Also, adopt a phased roll-out approach to identify issues and refine the workflows before full deployment.

Hidden Costs & Budget Pitfalls

In the initial healthcare integration budget planning, you usually consider all the major things that require a significant part of your investment. However, there are always hidden costs and some of the budget pitfalls that always make you feel like you’re paying. But if you somehow consider such aspects as well, you can save some money here and there. 

For instance, after the deployment process, ongoing optimization is necessary to align the integration bridge with your workflows, user feedback, etc. This requires you to invest further in IT resources and also in consultations. 

On top of that, whenever you make a change request, whether that be implementing new integrations, updating interfaces, or modifying existing workflows, comes a hidden cost which further requires investment. That is why it is always suggested that you talk with your vendor about such things beforehand to avoid any hidden costs.

Last but not least, the budget pitfall you won’t see coming will be the operational transition cost. Since it will be something new for your staff and users, you will have to invest in their training.

Cost Control Strategies

Up until now, you have just encountered the things that only increase the cost of EHR integration, and given its expensive nature, it is indeed natural. Having said that, there are some cost control strategies that can be implemented.

The best way to do that is by governing the project closely for budget management by deploying a strong executive leadership and partnering with experienced people.

Along with that, define clear objectives and document everything. This way, you can ensure you’re always on track with the agreed terms. Also, release the feature in phased roll-out, where you can easily identify and address the issues without increasing expenses and minimizing disruptions.

And last but not least, implement value engineering approaches so you can optimize your resources well and eliminate redundancies.

Calculating ROI: Justifying Your Integration Investment

On average, a custom EHR integration can go from $30,000 to $150,000. However, if you’re a small practice, then the budget can go from $20,000 to $65,000, and if you’re a large practice, then it can vary from $200,000 to $650,000, including hardware, software, training, implementation, maintenance, etc.

This is a huge investment that you’re making and that needs to be justified. So let’s see what your return on investment is for your custom EHR integration venture.

Quantifiable Benefits Assessment

Conduct a quantifiable benefits assessment of EHR integration so that you can get an idea about the impact this integration will have on your practice. Start with calculating the administrative efficiency gains, such as automating routine processes like scheduling, billing, and documentation to reduce manual data entry and free staff time.

Along with that, some of the administrative efficiency gains are faster workflows, reduced paperwork, improved billing, and employee efficiency. All these activities bring a cost-saving nature to your practice by minimizing errors, leading to lower administrative costs and enhanced productivity.

Along with administrative efficiency, EHR integration also improves the clinical workflows of your practices. For instance, accessing patient data will be easy, documentation will be automated and accurate, and last but not least, it will help you in bringing your entire care team together on the same page and working towards the same goal.

Revenue Cycle Improvement

EHR integration also improves your revenue cycle. Let’s see how. 

First things first, it provides you with ample opportunities to avoid additional costs by eliminating the need for test duplication and reducing errors. This improves accuracy in documentation, leading to faster claims processing and submission.

Along with that, with decreased manual processing of claims, etc., the focus is on shifting to care delivery. This means that providers are able to treat more patients, which gives you more opportunities to streamline your practice’s finances and reimbursements.

The reduction in errors due to automated processes leads to fewer mistakes and minimizes compliance risks. This not only simplifies the work for administrative staff but also helps you in improving your staff retention rate.

ROI Calculation Methodology

The best way to calculate your EMR integration ROI is by considering the time-to-value. This means how quickly your practice is actually benefiting from the EHR integration with efficient project management, tight scope control, and early optimization, which helps your practice reduce the overall expenditure of your EHR integration venture.

Also, the payback period is calculated by dividing the initial investment by the annual net financial benefits. Though this can be impacted by various unaccounted factors, it can give you a brief idea of when you can recover your investment and actually make a profit from this venture.

Another method of calculating your ROI is by conducting a net present value analysis. If the analysis shows a positive result, then it can be considered a financially worthy investment for the long term. 

And since you’ll be using this EHR integration bridge for a long period of time, it is best to calculate the long-term benefits, including cost saving, increased revenue scope, etc.

Long-Term Cost Management: Total Cost of Ownership

Since we talked about the long-term use of this EHR integration, it is best to consider the long-term expense that you will have to incur with this custom EHR integration. 

Ongoing Operational Expenses

In the ongoing operational expenses, monitoring and maintenance costs are something that will be a recurring factor. Since your system will be exchanging huge amounts of data on a regular basis, there are bound to be some problems that increase your expenses. On top of that, interface updates and modifications should also be considered.

Apart from these monitoring, maintenance, and modification, you also have to consider the period testing and validation cost to ensure your system is robust and performing well.

Integration Lifecycle Management

Understand that the technological as well as the healthcare landscape is constantly evolving. And as you update your system version, you need to do the same for your EHR integration bridge. Version upgrades and compatibility with other disparate systems need to be considered.

Cost Optimization Strategies

The best way to implement cost optimization strategies is to be creative and think out of the box. For instance, with EHR integration, you will build a connecting bridge between your system and the EHR system. Here you will find ample opportunities to automate data flow, etc. This way, you don’t have to build some of the unnecessary integrations.

Also, you can save effectively in staff training and capacity building by pre-building training materials, which you can share with your users as a user manual. And the most important vendor contract management is to negotiate with your vendor and try to find a middle ground that works best for both you and the vendor.

Frequently Asked Questions